cadman

There's a fella where I work who reckons his sister in law (who lives in brisbane) is coming home because of a sudden increase in her tax liability.

She is retired and gets a pension from the council who she used to work for over here.

I was sure that we had a reciprocal agreement with the australian tax in that if you get taxed on something here e.g. pension or interest from savings, that they then don't tax you again ?

Anyone advise if this would be the case ? I don't believe it.

Incidentally, she's is back over for a holiday and is already itching to get back as it's too cold here !

Andy

JAJ

Unless there are specific Double Tax Agreement provisions to the contrary it should be the other way around.

IE Australian tax on worldwide income (if tax resident) with a credit for any UK tax suffered. Remember that the UK personal allowance and lower rate tax bands are available, so UK tax (if any) will almost always be less than Australian tax.

MartinLuther

Although the double taxation rules are in place to make sure that people don't get taxed twice you have to be careful with pensions that are paying out as these comes under a different area of tax law. What she needs to do is contact the UK IR and get her pension zero-rated for tax purposes. That way she only gets taxed in Aus.

MartinLuther

You might be interested in this piece of advice from a man who knows more about this than me.

http://britishexpats.com/forum/showp...35&postcount=3